The crypto market reversed course in the early Monday trading session

The crypto market reversed course in the early Monday trading session after Sunday's rise, with nearly all major cryptocurrencies, including Stellar (XLM), trading in the red.

Crypto traders woke up to a sea of red in the early Monday (8 August) trading session as the market reversed course after Sunday's (6 August) massive price increases. Nearly all major cryptocurrencies were trading in the red.

Stellar (XLM) fell 3.49% over the last 24 hours to $0.2814 at the time of writing, further extending its 10.87% weekly losses. Stellar's 24-hour trading volume is also increasing as traders capitalize on the market volatility, up 88.83% to $270 million according to CoinMarketCap data.

Stellar (XLM) is approaching a major support test as the cryptocurrency market experiences selling pressure, and the next move could be decisive.

According to crypto analyst Ali, XLM must hold the $0.27 level to avoid a steeper correction. A break below this key support could trigger a potential 14% decline, dragging the price down to around $0.23.

"Stellar (XLM) needs to hold $0.27 to avoid a 14% correction to $0.23," Ali stated in a recent post on X, formerly known as Twitter.

Now trading at $0.281, XLM touched a low of $0.276 in the early Monday session, highlighting that bulls are actively defending the $0.27 range to prevent further drops. If this is sustained, XLM might be seen retesting the daily SMA 200 at $0.323 before the May 12 high of $0.334.

On the other hand, more selling pressure might target a drop towards the $0.266 level at the daily SMA 50 before the $0.23 level.